Novanta (NASDAQ:NOVT) Shares Cross Above 200 Day Moving Average - Should You Sell?

Key Points

• Novanta shares rose 2.3% and crossed above their 200-day moving average of $141.92, reaching $146.33 before last trading at $144.02.
• Analyst sentiment is mostly cautious: Novanta has a consensus “Hold” rating from MarketBeat, despite a $194 average price target.
• The company beat quarterly expectations with $0.89 EPS versus $0.83 expected and revenue of $265.81 million, up 10.3% year over year; institutional investors own 98.35% of its shares.

Novanta Inc. (NASDAQ:NOVT - Get Free Report) shares passed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $141.92 and traded as high as $146.33. Novanta shares last traded at $144.02, with a volume of 373,891 shares trading hands.

Analyst Ratings Changes

A number of equities analysts recently commented on NOVT shares. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Novanta in a research note on Tuesday, October 13th. Wall Street Zen downgraded shares of Novanta from a "buy" rating to a "hold" rating in a report on Saturday. Zacks Research lowered shares of Novanta from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, October 6th. Finally, Robert W. Baird set a $194.00 price objective on shares of Novanta in a research note on Friday, August 7th. One equities research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, Novanta currently has a consensus rating of "Hold" and a consensus price target of $194.00.

Novanta Stock Up 2.3%

The company has a market cap of $5.45 billion, a PE ratio of 92.32 and a beta of 1.72. The company's 50 day moving average is $142.73 and its 200 day moving average is $141.92. The company has a current ratio of 4.57, a quick ratio of 3.79 and a debt-to-equity ratio of 0.12.

Novanta (NASDAQ:NOVT - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The technology company reported $0.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.83 by $0.06. The company had revenue of $265.81 million during the quarter, compared to analysts' expectations of $262.30 million. Novanta had a net margin of 6.00% and a return on equity of 10.83%. The firm's quarterly revenue was up 10.3% on a year-over-year basis. During the same period in the previous year, the company earned $0.76 EPS. Novanta has set its FY 2026 guidance at 3.680-3.740 EPS and its Q3 2026 guidance at 0.950-1.000 EPS. As a group, analysts predict that Novanta Inc. will post 3.70 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of NOVT. Signaturefd LLC grew its position in shares of Novanta by 231.7% during the 3rd quarter. Signaturefd LLC now owns 345 shares of the technology company's stock worth $49,000 after buying an additional 241 shares in the last quarter. Gibbs Wealth Management increased its stake in shares of Novanta by 5.7% during the third quarter. Gibbs Wealth Management now owns 12,328 shares of the technology company's stock valued at $1,753,000 after buying an additional 662 shares during the period. Yousif Capital Management LLC lifted its stake in Novanta by 11.2% in the third quarter. Yousif Capital Management LLC now owns 10,934 shares of the technology company's stock worth $1,555,000 after acquiring an additional 1,098 shares during the period. Diversify Advisory Services LLC lifted its stake in Novanta by 9.8% in the third quarter. Diversify Advisory Services LLC now owns 19,097 shares of the technology company's stock worth $2,574,000 after acquiring an additional 1,705 shares during the period. Finally, GK Wealth Management LLC purchased a new stake in Novanta in the third quarter worth about $106,000. Institutional investors own 98.35% of the company's stock.

About Novanta

Novanta Inc is a technology company that develops and manufactures precision equipment and components used primarily in medical and advanced industrial applications. Its solutions are designed to support the movement, imaging, measurement and processing functions of complex equipment.

The company's products include photonics and laser components, precision motion-control systems, medical imaging and visualization technologies, and equipment used in minimally invasive and robotic surgery.

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